KL, S’pore conclude deal
Both countries mutually accepted each other’s proposals on the deal except on the issue of development charges payable on the three parcels of land under the points of agreement (POA) in Tanjong Pagar, Kranji and Woodlands.
The two countries agreed to refer the charges to arbitration under the auspices of the Permanent Court of Arbitration (PCA).
Prime Minister Datuk Seri Najib Razak and his Singapore counterpart, Lee Hsien Loong, issued a joint statement after leading their respective delegations to a bilateral meeting at the Istana yesterday.
At a press conference later, the two leaders described the final agreement as the “enhanced POA”. Both leaders agreed that the attached commitments to the agreement would enhance cooperation between the two countries.
These included the plan to build a rapid transit system linking the republic and Johor Baru and the joint-venture project for a wellness township in Iskandar Malaysia.
With regard to the outstanding issue, Najib said both sides had agreed with not only “a legally correct deal but also a politically acceptable solution”.
“We want this agreement to be able to stand the test of time. If the agreement was only legally right, it could be subjected to criticisms. That is why we also want it to be politically acceptable by both sides.”
Najib added that with the issue on the way to resolution after being a source of contention for the past 20 years, both countries could now move on to enhance ties for mutual benefit.
On development charges being referred to the PCA, Najib said the matter had been done in such a way because both sides wanted it to be concluded amicably.
“Rest assured, the proposed development under the agreement will proceed as planned as it does not have to wait for the outcome of the arbitration.”
He said this agreement signified the final chapter in the longstanding arrangement, which started 20 years ago.
“We are both delighted as well as relieved that we can put this behind us and move forward.”
The prime minister pointed out that Singapore and Lee had shown deep commitment to addressing the POA, which was of mutual benefit to both sides, resulting in the old version of the POA being further enhanced.
The last time Malaysia and Singapore had referred to the PCA was over the republic’s land reclamation project on Pulau Tekong, which Malaysia claimed had a negative impact on its environment.
Lee, on his part, expressed satisfaction that the railway land issue had finally been settled and described the agreement as being the mark of a new beginning for relations between the two countries.
“I have to admit that the conclusion of this agreement has not only delighted us but also gave us a sense of relief as we can now move forward with our relations for the mutual benefit of both countries.”
Later, Johor Menteri Besar Datuk Abdul Ghani Othman, Foreign Affairs Minister Datuk Seri Anifah Aman, Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop and Khazanah Nasional Bhd chairman Tan Sri Azman Mokhtar expanded on the details of the agreement in a briefing for the Malaysian press, particularly on the sole contentious issue of development charges.
The issue arose after the Singapore side argued that the development charges needed to be paid by the joint-venture company M-S Pte Ltd, which was set up by Khazanah and the Singapore government’s investment arm, Temasik Holdings, to develop the parcels of land contained in the POA.
Malaysia had, on the other hand, argued that the issue of development charges should not arise at all.
Azman explained that despite the development charges being “substantial”, the project to develop the parcels of land would still be economically viable even if the PCA eventually decided that it needed to be paid by M-S Pte Ltd.
“The matter should not in any way be considered a snag in the agreement that was finalised today,” he said, while stressing the development of the land would proceed as planned, even while the matter was being deliberated by the PCA.
